Partnership

Question 1

What is the procedure regarding partners and conflicts of interest?

Answer 1

A partner is required to avoid conflict of interest without full disclosure to other partners. If other partners know of conflict and do not object, it’s all good

Question 2

In what situations our partners in partnerships not binding?

Answer 2

Partners in partnerships are binding unless third-party knows they have no authority or does not know or believe that they are partner

Question 3

Can a partner assign their interest in the partnership to another person?

Answer 3

Yes, but the person does not become a partner

Question 4

Can a partnership create charges?

Answer 4

A partnership cannot raise finance by creating a floating charge

Question 5

Should a partner in the partnership get remuneration?

Answer 5

There is no implied entitlement to remuneration

Question 6

Do partners have unfettered access to documents?

Answer 6

It is their right of access to all partnership books and accounts (i.e. unfettered access)